Serbia may pass the CBAM test, but it is still far from a real green industrial policy. Regulations related to CBAM and domestic carbon pricing are being adopted, albeit on tight deadlines for companies. Most of the necessary framework already exists, but some sub-legal acts and practical procedures are still missing. In the short term, the biggest problem will be the verification of data that companies provide to EU buyers and declarants. In the long term, the key challenges are an insufficiently developed (green) industrial policy and an unconvincing pace of energy transition, while the possibility of including EPS in a system equivalent to the EU ETS looms as a major horizontal threat to the economy, households, and public finances.